Two-Thirds of Singaporeans Lack Savings to Maintain Lifestyle

Two in three working Singaporeans lack the savings to last beyond six months without compromising their existing lifestyles should they lose their jobs now, according to a recent survey by OCBC.

Around half of the respondents already claimed to have suffered wage cuts, prescribed no-pay leaves or reduction of commission-based earnings. More than half the respondents saw their savings shrink with just 20 percent able to maintain the same savings levels.

Around 55 percent of respondents said they were worried about their current income and job security with 38 percent saying this would persist through to December.

As a result of the financially troubling drivers fuelled by the coronavirus pandemic, many have also had to make adjustments to their financial plans.

23 percent of those in their 20s who are invested in financial plans have indicated that they allocated more money to retirement. Two in five also plan to downsize their portfolios with around 16 percent seeking to cut investments by more than 20 percent.

It is encouraging that some are doing the right thing to boost their financial health, by continuing to save, spending prudently and making sound investments, according to their risk appetite and financial circumstances, Tan Siew Lee, head of wealth management head at OCBC. But we also hope that those who are cutting back on these aspects, which are crucial to building a nest egg for retirement, will not despair.